“Seems to me you should have a job to put in 401K money – with a company that has a 401K plan.”
We are self-employed in our own business. (And pay almost 15% self-employment taxes.) You can Google “Individual 401K plans” to learn more about this subject. And yes, gambling as a business is a “job” – although a fun one, it is never an easy one!
“Do you know if the tax law will be changing next year for filing expenses against winnings? Our accountant said so, that the government does not like how it is set up that you can deduct your expenses against winnings.”
I haven’t heard any talk on this subject. However, I never predict what the government will – or won’t – do to the tax code, especially concerning “sin” taxes.
“If you do not mind, what would be the appropriate activity code to put on schedule C? 713200 as gambling industry?”
That is the code we use.
“Jean, quick question. I, too, have incurred state tax in Louisiana on W2G VP wins. I live in Texas. In the past I’ve deducted that tax on my Schedule A under “taxes.” I’ve not been questioned by the IRS on this in the past. Do you see a problem with handling this tax in this manner? Obviously I’m not a professional gambler so I wouldn’t be handling it the same way you have described above. Thanks.”
That isn’t a problem the way you do it. However, I don’t want to just take it as a deduction on my federal return. I want all – or at least most of it – back. So I file a non-resident Louisiana return, and anyone could do this whether they are a recreational or professional gambler.
“Seem to be in your camp regarding 2012 ROYAL successes – 100000+ hands since my last royal. The “royal fairy” obviously does not understand statistics.”
Just found a way to court the “royal fairy.” Brad and I each played 100 Play for about 4 hours last week and got 16 royals. The problem with this is that we pulled out a win of only two of them. The other 14 were just “traveling money.” Typical for multi-line games. You need to get some bigger dealt hands to pull out the big wins!